littlemisshelper
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*percentage help please*
The Smiths are buying a new refrigerator. The cash price is $1,925.00. They will make a down payment of $125.00. The balance will be covered by an installment loan. The loan will be repaid in 24 monthly payments of $88.00. They have been quoted a loan interest rate of 8 percent. The annual percentage rate for the loan is %. (Round your answers to two decimal places.)

Respuesta :

sqdancefan

Answer:

15.84%

Step-by-step explanation:

There is no formula that will tell you the interest rate. It must be computed iteratively or found graphically. A financial calculator can do the work for you.

The parameters this one uses are

  • number of payments (24)
  • the amount financed (1925 -125 = 1800)
  • the monthly payment, negative because it is being paid (-88.00)
  • the remaining balance after all payments (0)
  • the number of payments per year (monthly = 12)
  • the number of times per year interest is compounded (monthly = 12)
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